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Tokyo Bourse Halts Nissan Share Trade Temporarily

By

Shawn Schroter

Updated March 30, 2011 9:10 p.m. ET

The Tokyo Stock Exchange temporarily halted trade of Nissan Motor Co. shares Thursday morning, a rare occurrence for a blue-chip Japanese firm, after a media report said the company is considering setting up a holding company for the auto maker and France's Renault SA.

In an interview with the Nikkei, Nissan President
Carlos Ghosn
said the holding company would also bring the affiliates of the two auto makers in Russia and elsewhere under a single umbrella. The process could take place in two or three years, Mr. Ghosn told the paper.

The paper also cited Mr. Ghosn as saying the move must be explained to shareholders and their interests must be taken into consideration and the French government, which owns a 15% stake in Renault, will have a say.

Nissan later said in a statement that Mr. Ghosn has frequently stated to the media, investors and others that the corporate structure of the Renault-Nissan alliance will continue to evolve—as it has for the past 12 years—and that there are no plans now to form a single holding company for both Renault and Nissan.

"His remarks were mischaracterized," said
Simon Sproule,
a spokesman for Nissan. "He has basically said the same thing before: that the alliance as a 12-year entity could be ready for a change" but that no decisions have been made.

The company also said the report was a misinterpretation of a wide-ranging interview in which Mr. Ghosn said that the corporate structure of the Renault-Nissan alliance would remain dynamic.

Following the company's formal comment on the report, the Tokyo bourse lifted the suspension 10:01 a.m. local time.

Once the suspension was lifted, Nissan's shares extended gains in early trading, opening up 1.4% at ¥740 compared with a 0.1% gain in the Nikkei Stock Average.